Ashutosh Fibre IPO

GMP History

Strengths

• ✓The company claims to have developed capabilities in recycling and re-engineering para-aramid fabrics through its proprietary “Fabric-to-Fibre” recycling process, which uses para-aramid fabric waste as an input. Para-aramid fabric waste stood at Rs 14.09 crore, Rs 14.30 crore, and Rs 25.09 crore, representing 21.46%, 19.60%, and 34.72% of total raw material purchases of Rs 65.68 crore, Rs 72.95 crore, and Rs 72.28 crore in FY26, FY25, and FY24, respectively. The company has also installed a dedicated regenerating machine for high-strength fibres to support this recycling process.
• ✓The company also has an established manufacturing setup with five processing lines and three yarn manufacturing technologies: ring spun, DREF (friction spun), and open-end spinning. This gives it the flexibility to manufacture different types of technical and synthetic yarns for industrial and specialised applications.
• ✓The company claims to have established a presence in the polypropylene (PP) spun yarn segment in India, supported by its production capabilities and customer relationships. Sales of polypropylene yarns accounted for approximately 22.95%, 22.64%, and 21.27% of revenue from operations in FY26, FY25, and FY24, respectively.
• ✓The company claims to have established long-standing relationships with customers and suppliers across its business. The average period of its relationships with major customers is approximately six years, while the average period of its relationships with major suppliers is approximately 5.5 years.
• ✓The company claims to maintain stringent quality control across its manufacturing processes, supported by testing and monitoring equipment such as the Mesdan Evenness Tester and Pinter Hard Core attachment system. For FY26, FY25, and FY24, respectively, the defect and rejection rates stood at a low 0.13%, 0.40%, and 0.03% of revenue from operations.
• ✓The company claims to have undertaken sustainability initiatives, including a 380 KW rooftop solar power system and a 4 MW solar power plant for captive consumption. The 4 MW solar power plant was commissioned in February 2025 and has substituted a significant portion of the company's electricity requirements from FY26 onwards.
• ✓The company has multiple certifications covering quality, environmental management, workplace safety and textile standards. These include ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, 5S and OEKO-TEX Standard 100 certifications.
• ✓The company has seen a consistent increase in revenue from operations and PAT. Revenue from operations increased from Rs 109.87 crore in FY24 to Rs 114.03 crore in FY25 to Rs 117.37 crore in FY26, while PAT increased from Rs 7.05 crore in FY24 to Rs 8.51 crore in FY25 to Rs 16.04 crore in FY26.

Risks

• !The company does not have long-term agreements for the supply of its key raw materials and sources a significant portion of its requirements from a limited number of suppliers. Purchases from the top five suppliers stood at Rs 29.33 crore (44.66%), Rs 38.14 crore (52.26%), and Rs 41.63 crore (57.60%) in FY26, FY25, and FY24, respectively. If the company is unable to procure raw materials of the required quality and quantity at competitive prices, or if there is any disruption in supplies from key suppliers, it could adversely affect the company's business and finances.
• !The company derives a significant portion of its revenue from a limited number of key customers. Revenue from the top five customers stood at Rs 60.83 crore (51.83%), Rs 58.82 crore (51.57%) and Rs 63.62 crore (57.91%) in FY26, FY25, and FY24, respectively. The loss of any of these customers, a reduction or cancellation of their orders, or the failure to renew orders on comparable terms could adversely affect the company's business, results of operations, financial condition, and cash flows.
• !The company is subject to export obligations under the Advance Authorisation Scheme and Export Promotion Capital Goods (EPCG) Scheme. Inability to fulfil these obligations within the prescribed timelines, adverse changes in foreign trade policy, or unfavourable external factors could hurt the company's business, financial condition, and cash flows.
• !The company's business is exposed to risks relating to the performance of the technical textile yarn industry, including fluctuations in demand, supply disruptions, regulatory changes, and commodity price volatility. Raw materials consumed stood at Rs 64.67 crore, Rs 69.73 crore, and Rs 68.00 crore, representing 55.10%, 61.15%, and 61.89% of revenue from operations in FY26, FY25, and FY24, respectively. A significant portion of key raw materials, including para-aramid, meta-aramid, modacrylic and FR viscose fibres, is imported, exposing the company to foreign exchange volatility, import duties, and global supply chain disruptions.
• !The company derives a significant portion of its revenue from exports, exposing it to international market and trade-related risks. Export sales accounted for 38.99%, 38.05%, and 43.59% of revenue from operations in FY26, FY25, and FY24, respectively. Revenue from China stood at Rs 25.59 crore (21.80%), Rs 22.53 crore (19.75%) and Rs 28.05 crore (25.53%) during the same periods, respectively. Any adverse changes in foreign exchange rates and foreign trade, demand, import and export regulations, customs requirements, international logistics, or freight availability could adversely affect the company's business and financial performance.
• !The company is heavily dependent on the sale of para-aramid-based spun yarn and 100% polypropylene spun yarn. Revenue from operations stood at Rs 117.37 crore, Rs 114.03 crore, and Rs 109.87 crore in FY26, FY25, and FY24, respectively, of which revenue from para-aramid-based spun yarn stood at Rs 32.46 crore (27.66%), Rs 27.22 crore (23.87%) and Rs 35.27 crore (32.10%), while revenue from 100% polypropylene yarn stood at Rs 26.93 crore (22.95%), Rs 25.82 crore (22.64%) and Rs 23.37 crore (21.27%) during the same periods. A fall in demand or selling prices of these yarns could hurt the company's business, results of operations, cash flows, and financial condition.
• !The company is dependent on a limited number of customer-approved suppliers for raw materials used in para-aramid, viscose, and acrylic fibres, restricting its ability to source from alternative suppliers. Purchases from outside India stood at Rs 23.83 crore (36.29%), Rs 26.93 crore (36.92%), and Rs 29.76 crore (41.18%) of total raw material purchases in FY26, FY25, and FY24, respectively. Any disruption, quality failure, or financial difficulty at these suppliers, or inability to source alternatives at competitive prices, could adversely affect the company's production, revenues, and financial condition.
• !The company and its promoters are involved in ongoing tax proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
• !As of FY26, the company’s trade receivables were Rs 21.44 crore. Failure to collect these receivables on time or at all can negatively impact the business and its financial condition.
• !As of FY26, the company had outstanding financial indebtedness of Rs 47.92 crore. Failure to service or repay these loans can harm the company’s operations and financial position.

About Ashutosh Fibre

Ashutosh Fibre is a manufacturer of technical and synthetic yarns and fabrics for industrial and specialised applications. The company operates across four categories of technical textiles: Indutech, Protech, Hometech, and Mobiltech. Its products are used in applications including filtration, construction, automotive, packaging, protective equipment, and home furnishing. The company supplies its products directly to industrial manufacturers, processors, and institutional buyers under a business-to-business (B2B) model. It also undertakes yarn trading and job work services, with manufacturing being its principal activity.